Why do the majority of transformation initiatives fail to deliver? The need to change is almost always real and undeniable. It is also very likely that how the specific part or parts of a business need to change have been recognised and agreed by the leadership team. The failure to successfully implement these changes is usually down to ineffective leadership. All too often, the leadership gets so caught up in the transformation itself, that the most important part of any change, the employees, is overlooked.

For any change to succeed the leadership first needs to recognise that it is going to be their people who will deliver (and live with) the change – and to do that, they need clarity about the desired end result, and most importantly, why it needs to be achieved.

The leadership must also of course remain focussed on the outcome, modifying it as necessary from time to time, and reviewing whether the change strategy and tactics remain  on track to deliver.

I was able to recently help a company implement a key change initiative. The company, having found itself unable to charge its usual prices due to a reduction in demand for its services, reacted to the falling revenue stream by introducing drastic reductions in operating costs. A range of cost management initiatives was instigated, including a reduction in the payroll. But this latter measure was not achieved through head-count reductions, it was to be done with an across the board pay cut.

The leadership knew that to successfully implement the cost cutting measures, not least the pay cut, they needed to have their people on their side. A series of employee consultation meetings explained the situation in detail to everyone, explored a variety of scenarios including the winding down of the Company, and allowed and encouraged everyone to ask questions, make suggestions and so to become part of the solution. After a while, the employees accepted the proposed changes and indeed recommended further changes.

Every month the employees were gathered together to have the current financial position  of the company presented to them in detail. The employees often contributed their own ideas to further improve the company performance and such behaviour led to innovative thinking throughout the company. Interestingly, morale at the company reached a new high despite the difficulties it was facing. That was because everyone was not only informed but also fully engaged in the task of implementing the necessary changes and saving the company. They understood the ongoing results of their cost saving efforts and so they felt they had some actual power over the company’s destiny and well as over their own.

The company continues to trade in a challenging market and whilst its long-term success is far from certain, one thing is for sure; if they do ultimately fail it will not be because the leadership failed to get the employees on their side.

If you would like assistance designing or implementing change management initiatives, however large or small, then contact us at info@crescus.com